SAN JOSE (CBS SF) – People looking to buy in Silicon Valley’s already pricey housing market received even more discouraging news, as a real estate company declared the nation’s nine out of the 10 “hottest” neighborhoods to purchase a home in the country are in the San Jose area.
Redfin analyzed visitors to its website and based its prediction on increases in favorites and visits to home listings. All of the neighborhoods that topped the hottest neighborhood list had median home prices above $1 million.
The company found the Bucknall neighborhood in San Jose to be the hottest neighborhood to buy in the nation. In December, the median sale price in Bucknall was $1.565 million, with 100 percent of the homes on the market being sold above list price. On average, the homes were sold 23.8 percent above list price.
Second on the list was the Cambrian neighborhood, also where all of the homes sold went above list price. Median sale price was $1.24 million, with homes sold 18 percent above list price on average.
The White Oak neighborhood in Campbell was third, with a median sale price of $1.01 million. About two out of three homes sold in December went above list price.
The next four neighborhoods on the list were all located in Sunnyvale and Santa Clara, west of San Jose. They include Ortega in Sunnyvale (no. 4), West Santa Clara (no. 5), Sunnyvale West (no. 6) and Lakewood Village in Sunnyvale (no. 7).
Rounding out the hottest neighborhood list includes Blacow in Fremont (no. 9), and Rex Manor in Mountain View (no. 10).
The only neighborhood on the list not in the San Jose area was in San Francisco. The city’s Sunnyside neighborhood was 8th on Redfin’s list, with a median home price of $1.273 million. Nearly 90 percent of homes in Sunnyside sold above list price.
The company said in a statement that the San Jose area is attracting tech workers who have been priced out of San Francisco and the Peninsula. “The result has been a tech-worker migration to the South Bay charged by people looking for relative affordability, highly rated schools, short commutes and access to jobs,” Redfin Silicon Valley agent Kalena Masching said.
Redfin’s analysis comes a month after company CEO Glenn Kelman predicted a “mass migration” of tech companies from coastal cities to cheaper metropolitan areas away from the coasts.
“Silicon Valley is going to leave Silicon Valley,” Kelman said in an interview with CNBC, saying Dallas, Denver, San Antonio and Houston would be his top picks for real estate investment.